Let’s face it: Everyone wants to be successful, and there’s nothing quite like starting your own business to enrich your life personally and financially.
Sometimes, however, the road from start to finish is a bumpy one. The first two years of your wholesale distributorship’s existence will be the ‘learning’ years, when you experience the ups and downs of being a new business owner in a new industry.
On the positive side, plenty of wholesale distributors came before you and are now overflowing with advice and inspiration that will help you reach your goals. Here are a few thoughts to keep you going through the start-up phase.
Managing the credit game
Because every wholesaler plays the middleman position between manufacturer and distributor, the real challenge lies in leveraging that position to your best advantage.
While it may appear that you’re powerless being stuck between the two, there’s also a ‘glass is half full’ way to look at the relationship. As a wholesale distributor, it’s up to you to make the other two businesses work in sync: You’re helping the manufacturer get its products to market, and you’re helping the customer obtain the products he or she needs to run a business.
While playing that important role, one of the major mistakes a wholesale distributor should avoid at all costs is the over-extension of credit to customers. This tends to occur when one or more of your customers demands extended payment terms on their invoices, yet your manufacturers are demanding their own payment terms on the other end.
You can avoid this by being diligent about checking credit references, meticulous when explaining your payment terms to new customers, and careful about not letting your receivables become too old, or “aged.”
The other part of the credit issue is the customer who buys too much and leaves you “overexposed” (meaning one particular customer owes too large of a percentage of your receivables). You can avoid this by setting an appropriate credit limit upfront, then reviewing the customer’s account on a twice-yearly basis (or whatever time frame works best for you). Credit limits can then be increased based on the customer’s payment history.
Clearing the hurdles
At YogaFit Inc., Beth Shaw says one of her firm’s biggest challenges is minimising the time between receipt of a customer order and receipt of the goods from the manufacturer or supplier.
“Not getting product from our suppliers on time is a constant challenge,” says Shaw, whose firm stocks inventory but also relies on timely shipments from suppliers, particularly on popular items that her customers buy in bulk. To work through it, Shaw not only pressures suppliers to fulfill orders faster but also provides realistic time frames (such as “allow two to four weeks for delivery”) to customers.
To guarantee that those customers are well taken care of in the interim – and on all future orders – Shaw says she impresses on her staff the importance of impeccable customer service.
“I really drill it into our staff, teaching them how to handle both satisfied and difficult customers,” says Shaw. “We also teach them how not to let people steal their time and how to address their needs and solve their problems in an efficient manner.”
Good advice to heed
Laura Benson, owner and founder of Jeanne Beatrice LLC, advises both new and growing distributors to pay attention to consumer tastes and buying shifts – both of which can quickly derail even the best laid business plans. “Keep tabs on economic changes, what people are willing to spend, and other trends that could significantly impact your business,” says Benson.
Knowing what your strengths and weaknesses are – and then rounding out those attributes with either in-house or outsourced support/help—goes a long way in helping businesses get off of the ground and stay in growth mode, Benson adds.
“I don’t think you need to know all the answers at the beginning, so just trust that if you know your idea is good, it probably is,” says Benson. “For me, it was one baby step at a time, and before I knew it, I was selling baskets.”
Evan Money, president at Extreme Sports, says that even in today’s tech-oriented world – where customers can find new sources of products with the simple click of a mouse – relationships remain a strong foundational element of any distributor-customer transaction.
Related: Wholesale Food Sample Business Plan
“As the world gets larger, it really gets smaller and flatter. So while someone can do a deal direct with a distributor in China or India, the reality is that the customer may never hear from that source again once they’ve paid for the merchandise,” says Money, who’s heard multiple horror stories along those lines from customers over the past few years.
“Rather than focusing on being the low-price leader, put an effort into building strong relationships. That energy will be well spent over the long run.”
This article was originally posted here on Entrepreneur.com.
Here’s What Jeff Bezos Prefers To Work-Life Balance And Why You Should Live By It
Work-life balance naively suggests working and non-working hours should be evenly apportioned.
Amazon is known for building a culture that values hard work. So much so that the organisation has received criticism from current and former employees for having to work on Thanksgiving, or even when ill.
When asked about Amazon’s work-life balance, Jeff Bezos remarked that he ascribed to the phrase “work-life harmony” instead.
Here’s how hard-charging businesspeople can maintain energy at home and at work without burning out by finding work-life harmony in place of work-life balance.
Measure work and home focus as a matter of energy instead of time
It isn’t about how many hours you spend at home or at work; it’s about the energy you bring to both parts of your life. If you enjoy working long hours, and that helps you to feel present while at home, then by all means continue.
This is a fundamental principle in Bezos’s theory of dividing one’s time between work and life. Because Bezos loves what he does, he finds energy from accomplishing his work in a manner that works well with his notoriously high standards.
As many can attest, our emotions bleed into all areas of our life. When you can gain energy from doing good work, it can help to propel you to be more successful in your life outside of work. Conversely, when things aren’t right at home, it can be difficult to find the energy to do your best work in the office. A central precept of work-life harmony is living such that both the professional and personal aspects of our life energise us to be our best at home and in the office.
This does not necessarily mean that we should spend our time in a balanced way, as the phrase “work-life balance” implies. Rather, we should spend our time in such a way that we are our best selves. In so doing, we will be better people on the whole.
Build a flexible work-life schedule
Just as different people will amass different levels of energy from work and life outside of work, different people will find they are most productive at different times of the day. The 9-5 work culture that has existed for decades is really shifting now. Most modern offices allow some form of flexible work, which means you have the ability to set your own hours to some degree.
Experiment with working at different times of the day to find the schedule the helps you to be most productive. In so doing, you’ll have more time to do your best work, and more energy to spend with loved ones as a result of increased productivity.
Know when to say “no”
We tend to think that taking on as many projects as possible is a sign of a good professional. But being busy is not the same as making an impact. To do your best work, you’ll need to prioritise projects that you know you can add value to.
Spinning your wheels is demoralising. Look for projects in which you can easily enter a “flow state” where hours melt away. This is the environment in which you are doing your best work, and are happy to be doing the work itself. It is in moments of flow that we often feel most productive, and even fulfilled. Therefore, it is after moments of flow that we tend to feel guilt-free about enjoying quality time with loved ones while unplugging from work.
If you’re approaching a time-consuming work project, communicate that to the important people in your life. Otherwise, they may think you are avoiding them due to a more insidious reason.
Providing those you love with a glimpse into your professional commitments can also help them to help you. If a good friend knows it will be difficult for you to communicate for a few weeks, they will know to pause conversations so as not to burden you with having to reply to texts or emails.
Similarly, a partner who knows that you are responsible for delivering an important project may be able to rearrange their schedule in order to better support you in the short term.
Conversely, if family commitments will prevent you from working at full capacity for a certain period of time, set the right expectations with colleagues. A good workplace is one that is flexible to the realities of employees’ personal lives. Managers who care about the well-being of their people are usually willing to help employees take care of personal commitments.
Adapting to a changing work life
Work no longer happens between the hours of 9 AM and 5 PM, Monday to Friday. Work happens Saturday mornings, and late Friday nights. It happens on vacation, and during graduations. The idea of work-life balance suggests that there should be an even split between working and non-working hours.
In reality, those who have undertaken ambitious careers should aim for work-life harmony, a lifestyle in which both aspects of life give you the energy to be your best self as frequently as possible.
This article was originally posted here on Entrepreneur.com.
Give Your Business The Best Chance Of Success
For that to happen an entrepreneur must distil the business’s reason for being and then doggedly pursue that vision.
In my capacity as a business owner and venture capitalist, one of the questions I get asked most often by entrepreneurs is, “how do I ensure my business succeeds?” While there’s no straightforward answer, there are important elements that I believe every entrepreneur must consider to ensure the greatest probability of success.
Firstly, no business will succeed if it doesn’t solve a unique pain point or problem for modern consumers or businesses. However, even if a business is able to carve out that niche, there’s no guarantee that growth will follow. For that to happen an entrepreneur must distil the business’s reason for being and then doggedly pursue that vision.
North Star metric
This principle of having a clear business vision guides all my decisions. Whenever I need to validate a choice or a change in strategic direction, or if I’m trying to determine what to focus on, I always refer back to my vision. If the two are incongruent, then I know I need to change tack.
Elon Musk is a great example of a successful entrepreneur who is guided by his grand vision. Everything he does, from Tesla to SpaceX, pertains to sustainability, both for the planet and the human race. It might be hard to make the connection when you consider his various businesses out of context, but everything he creates fits into a broader ecosystem that in some way moves the needle towards his ultimate objective. Developing Tesla cars that run on renewable energy is but a small, short-term plan that feeds into his grand vision, yet it’s also been the catalyst for the evolution of the motoring industry.
Related: The Popimedia (Mega) Success Story
Be clear, concise
In the same way, every decision an entrepreneur makes should in some way take them a step closer to realising their vision. In this regard, it is also vital that your vision is crystal clear – a murky or undefined vision will divert you off your path to success.
That’s because you’ll tend to focus on the wrong things, especially when scaling rapidly, or when running bigger organisations, because there are many tasks to complete every day. A lack of clarity also leads to poor decision-making, or, worse, decision paralysis, and that’s business suicide – I’d rather make a bad decision than no decision at all, because it prompts action. However, with a clear vision, more often than not, those decisions will be correct.
Defining your vision
So, how do you know if your vision is clear and, more importantly, relevant and consequential? The way I stress test my vision is to evaluate it every day against the decisions I take, and the direction of the business. This daily process helps to sharpen my decisions over time.
The other step is to remain open-minded enough to accept and acknowledge criticism, and take on board advice from trusted confidants and impartial experts. This is important, because you need to craft your vision based on as much information as possible, including valid criticism.
Ultimately, though, your vision for the business should align with your purpose. Forget about money and turnover as points of departure when defining your vision. These are merely metrics that can determine the strength and effectiveness of your business strategy.
For each of my several business interests, be it VC funding or ad-tech innovation, I have different visions. Each are meaningful to me, but in every instance, I don’t wake up every day with the sole ambition of making money.
While I need to make money to grow these businesses, or build something new, having purpose and vision are the ways I pull through those inevitable challenging situations. Having your vision front of mind in everything you do helps you make better decisions, and makes the hardships easier to endure. It helps you see through the turmoil, because you know where the process will lead, and you always know where the ultimate objective lies.
Jimmy Choo’s Co-Founder Explains Why There Are No Small Jobs
Tamara Mellon shares the strategy that has helped her find new opportunities throughout her career.
The co-founder of Jimmy Choo, Tamara Mellon, believes that you can find inspiration and opportunity anywhere. All it takes is determination to keep going and a keen eye for observation.
Mellon began her career in the early 1990s working as an accessories editor for British Vogue. Always on the hunt for up-and-coming designers, she came across Jimmy Choo, a cobbler working in London’s East End.
She would commission him to create shoes for fashion shoots. They were so well received by readers that the pair realised they could expand beyond one-of-kind pieces for the pages of the magazine.
This article was originally posted here on Entrepreneur.com.
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